UPDATED 21:03 EST / NOVEMBER 04 2019

CLOUD

Workday buys e-sourcing solutions startup Scout RFP for $540M

Financial management and human capital management software firm Workday Inc. today said it has acquired Scout RFP Inc., a San Francisco-based e-sourcing solutions startup for $540 million in cash.

Founded in 2014, Scout RFP offers a sourcing and supplier engagement platform for procurement teams. The company’s platform is aimed at streamlining the procurement process through a unified pipeline of projects and facilitates collaboration between stakeholders and suppliers.

Scout RFP claims that it makes enterprise commerce faster, less risky and more transparent tools needed to transform sourcing processing. The company describes its service as “strategic sourcing.” Scout RFP clients include Intuit Inc., EasyJet Airline Co. Ltd., Zappos.com, Biogen Inc. and Workday as well.

For Workday, the acquisition will complement its existing Workday Procurement and Workday Inventory offerings. Scout RFP will provide existing and future Workday customers with a “comprehensive source-to-pay solution with a best-in-class strategic sourcing offering to transform the procurement organization and deliver better business outcomes, including reduction in spend, greater policy compliance and maximized engagement across key stakeholders,” Workday Vice President Petros Dermetzis said in a blog post.

Coming into the acquisition, Scout RFP had raised $60.3 million in venture capital funding, including a round of $15.5 million in June 2017. Investors include Salesforce Ventures, Workday Ventures, Menlo Ventures, Scale Venture Partners, NewView Capital, New Enterprise Associates and Drummond Road Capital.

Workday shares barely moved on the news, down less than a 10th of a point in regular trading, but the deal was another notch in the belt for a company that continues to impress with strong financials.

As of its last quarter, Workday reported earnings before certain costs such as stock compensation of 44 cents per share on revenue of $887.8 million, up 32% from a year prior, beating analyst predictions. The company’s subscription revenue grew 34% year over year, to $757.2 million.

Scout RFP is Workday’s 14th acquisition, the company having been highly active in snapping up smaller companies in its 14-year history. Recent acquisitions include Trusted Key Inc., Stories and Adaptive Insights Inc.

The deal is expected to close in by the end of Workday’s fourth quarter, which ends Jan. 31.

Photo: ScoutRFP/Twitter

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU